Volkswagen Stock: Massive Job Cuts Boost Share Value

Volkswagen has unveiled a comprehensive transformation plan that will significantly reduce its workforce by over 35,000 positions by 2030, leading to annual cost savings exceeding €15 billion. The agreement, reached with the metalworkers' union, includes a reduction in technical manufacturing capacity by more than 700,000 vehicles at German locations. Despite these substantial changes, the automotive giant has committed to maintaining all production sites and avoiding forced layoffs. The news was well-received by investors, with Volkswagen's stock climbing 1.7% to become the second-strongest performer in the DAX index, approaching the €90 mark.

Production Site Reorganization

The restructuring particularly impacts operations in Saxony, with Dresden's Transparent Factory ceasing vehicle production by the end of 2025, while Zwickau's production of the ID.3 and Cupra Born models will transfer to Wolfsburg. The Osnabrück facility will continue T-Roc Cabriolet production until late 2027. As part of the agreement, employees have accepted temporary cuts in additional benefits, including the suspension of scheduled wage increases and the cancellation of profit-sharing payments for May 2026 and 2027.